Supplier Scheduling Systems Min/Max and PODS Suppliers

Supplier Scheduling SystemsMin/Max and PODS

Suppliers

Greg SmileyCentral Supply Chain

Procurement Systems

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Min/Max Supplier Training

Min/Max Concept Min/Max History Min/Max Web Screens in the Portal Order Policy - Min and Max Values Min/Max System Updates PODS – Purchase Order Discrete Scheduling system Instructions and Reference Supplier Scorecard Assistance

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Min/Max Supplier Training - Concept

Simple system where minimum and maximum inventory quantity are set for each part number Vought inventory levels are then managed by the

supplier between the minimum and maximum levels Replenishment: The supplier action of ordering,

producing and shipping product to Vought Vought receiving parts up to the max qty, prior to the

inventory quantity going below the min qty

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Min/Max Supplier Training - Concept

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0

Inventory Quantity

Time

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14

Consumption Consumption

Replenishment Replenishment

Minimum

Maximum

Consumption

Beginning Inventory = 25 pcs Monthly Demand = 2 pcs

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Min/Max Supplier Training - History

Late 2001 Min/Max inventory management was identified as a process and system to replace APORs

In 2002 the first supplier began working to an early MM process (Excel spreadsheet)

In July 2009 we have 42 suppliers in MM and approximately 50% of all parts purchased by Vought are managed in the Min/Max system

2009 decision was announced to abandon APORs and move to Min/Max as much as possible

In August 2009 we moved most suppliers out of APORs and into Min/Max or PODS.

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Min/Max Supplier Training - Portal

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Part Number• Part Number as listed on Purchase Order• Only Part Numbers with open POs are listed

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CH – Change Flag• An asterisk is shown when one of following conditions are

present: New Part Number, changed Min or Max value, new Purchase Order, or a new receipt is listed.

• The asterisk remains for 7 days

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Site• Site that uses the part: STU, HAW, MSF, JSF, NAS,

MIL

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Min Qty – Inv Qty – Max Qty• Min value that inventory is to be maintained above• Inventory Qty (updated nightly)• Max value that inventory is to be maintained below

Colors• Red = Under Min• Blue = Over Max• Green = Contact Buyer

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Dir – Direction• Inventory vs Min or Max

– U = Under = Inventory < Minimum– O = Over = Inventory > Maximum– V = Vought = Contact Buyer

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Priority Need Date (Initial sort of web screen)• If the Inv Qty does not support a manufacturing need date within

the next 30 days, a Priority Need Date is displayed• This is to help the supplier to identify critical PN requirements and

potential shortages

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Metric Eff Date – Metric Effective Date (MED)• For purposes of measurement of seller’s performance to min/max inventory

management, the parties will agree to a metric effective date (MED) which shall be the date after which the seller agrees to manage the buyer’s inventory within the Min/Max range. If there is no date, the expectation is that the supplier is responsible for maintaining the inventory between the Min and the Max.

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Behind Sch Demand – Behind Schedule Demand• If Vought’s manufacturing operation is behind schedule and did

not pull parts from inventory in a prior month, the qty of thoseparts is listed. These quantities will be consumed prior to consuming parts in the “current” month.

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Monthly Demand / Planned Consumption• The web page displays 12 discrete months (rolling) of planned

consumption• Download file has 24 months of planned consumption• Suppliers may not have all the planned consumption on PO

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Total Horizon Qty• Total quantity of parts loaded into Vought’s Master Schedule /

MRP System• Supplier may not have the Total Horizon Quantity on open POs

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Lead Time Calendar Days• The supplier lead-time in calendar days for the specific PN

(includes raw material acquisition and fabrication time) • If these values are incorrect, please notify your Vought buyer that

your lead-times have changed

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Program• The Vought program that the PN supports

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PO Number – PO Item – Open Qty• A listing of all open POs, item numbers & the remaining open qty• For a PN to show in MM there needs to be at least one open PO• There can be more than one PO open for a PN

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Total Open Qty• This represents the sum of all open PO quantities

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Last Receipt Date – Last Receipt Qty• The date of the last receipt of this PN• The quantity of the last receipt of this PN• The download file lists the last 5 receipts

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Colorization of Consumption Plan

Current Inv = 22 – (0 + 3 + 7) = 12 still above MinCurrent Inv = 22 – (0 + 3 + 7+ 7) = 5 < Min = YellowCurrent Inv = 22 – (0 + 3 + 7+ 7 + 7 ) < 0 = Red

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Online Sort Capability• Underlined headings indicate a data field that can be

sorted

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Min/Max Supplier Training – Download File

Sample Supplier

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Min/Max Supplier Training – Download File

Text file, tab delimited that can be opened by MicroSoft Excel

(from within Excel).The same data as displayed on

the web, but includes 24 months of demand and 5 receipt dates

and quantities.

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Min/Max Supplier Training – Order Policy

Monthly Ship Qty/ Ships$ Usage Min Max Span YearUnder $160 2 Mo 14 Mo 12 Mo 1

$161 to $300 1.5 Mo 7.5 Mo 6 Mo 2

$301 to $1K 1 Mo 5 Mo 4 Mo 3

$1K to $2K 0.5 Mo 2.5 Mo 2 Mo 6

Over $2K 0.5 Mo 1.5 Mo 1 Mo 12

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Min/Max Supplier Training – System Updates

Real-time Updates (if input or changed by buyer)• Metric Effective Dates (MED)• Min Values• Max Values

Nightly updates to MM system• Inventory values• Purchase Orders• Receipt information

Weekly Updates to MM system• Demand data

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Min/Max and PODS Supplier Training

Min/Max and PODS• APORs was replaced by Purchase Order Discrete Scheduling

System (PODS) – August 2009• Vought will have the ability to control by PN those parts that are in

Min/Max vs PODS– PODS candidate PNs – High dollar, out of production spares, etc.

• Some suppliers will have parts in both systems• Part delivery requirements/dates will be per the schedule on the

paper PO and will be reflected on the PODS screen• Nothing automated. If the delivery requirements/dates change,

supplier will receive a revised PO with the new dates

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PODS Supplier Training

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ABC MACHINE SHOP INC


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Supplier Training – Supplier Scorecard

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Supplier Training – Supplier Scorecard

PODS• Measures rolling twelve month average reflecting

percentage of shipments that were shipped on or before the contract negotiated ship date

Min/Max• Measures ratio of Part Numbers with:

– At least one open Purchase Order;– Inventory under Min – Without a Metric Effective Date

(MED) in the future;– Inventory over Max – Without a Metric Effective Date (MED)

in the future

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Min/Max and PODS – Assistance

Scheduling Standard Note – S121• Nick Dyer• (972) 946-3285• [email protected]

Min or Max Values and MEDs• Contact your Vought Buyer

Portal, Min/Max or PODS Systems & Training• Greg Smiley• (972) 946-3181• [email protected]

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Min/Max Supplier Training

Documents

Supplier Scheduling Systems Min/Max and PODS Suppliers